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Sass Koran Proof. Nominal Islam 7th Feb., 2015 Intermediate Microeconomics PEEP-3100 Home Work -1 1 . Suppose a teenager has $20 and likes both rap music (R) and country music (C) with a set of preferences so that U = CLC /ERR/2. Suppose that the tunes price of a rap music song is and the price of a country music song is. Find optimum levels of R and C. What is the greatest level of affordable utility (Use Lagrange method)? U=CA/AREA/2
Constrain = PC = 20 Applying Lagrange Method L=CA/AREA/2+ 2. Determine whether the following utility functions have strictly convex indifference curves (Use diagram and/or calculus). A. Uzi/2+ex./2 b. Met(xx/5, 12/2) C. +12)3 3. Consider the following utility functions ((see diagram and/or calculus ). A. EX. 124 b. Uzi/xx/4 I. Find MRS. for each function it. Graph the indifference curve for 1 for each utility function . Inventive/strict convexity, monotonic/strict monotonic) axioms. Between MRS. of (a) and (b), and comment. Ill. Check for lb. Compare Intermediate MicroEconomics By squeaky $1. 25. Suppose a student’s beverage budget is $20 per week. Suppose the student simply prefers more caffeine to less and that the tea sold has exactly one-third the caffeine as the coffee. Find the students optimal bundle and the maximum utility level.
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